Don’t raise rates

Unite delegate and finance sector worker, Dawn McAllister asked Bank of England governor Mark Carney to commit to not increasing the interest rate – because of the devastating effect it could have on millions of ‘over indebted’ families.

Dawn said that millions of people had “to borrow from payday lenders to get through the month because of low wages and cuts in real wages.

“An interest rate rise is likely to have wide social and economic fallout as people can no longer make ends meet and many will face the prospect of losing their homes.

“How much is the Bank of England going to consider this?” she asked, adding if wages were to increase, “when would you be looking at whether to raise interest rates?”

Mark Carney replied that it was currently unlikely that interest rates would increase – for the reasons given in his address about capacity in the labour market. He believed the prospect of wage increases was crucial in helping families get back to normal – but was not imminent.

He added that a banking review was currently underway as to how banks lent money to new business.

Speaking to UNITElive Dawn McAllister said she was pleased the interest rate would not be raised at this time. Dawn also welcomed his statement that Bank policy was not allied to any political party.